STAND. COM. REP. NO. 673

Honolulu, Hawaii

RE:    S.B. No. 63

       S.D. 2

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 63, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO WORKERS' COMPENSATION,"

begs leave to report as follows:

     The purpose of this measure is to require an employer to pay temporary total disability benefits to an injured employee regardless of whether the employer denies the employee's claim.

     Furthermore, this measure penalizes an employer who delays payment by increasing the amount of temporary total disability benefits that are payable to the employee.  This measure also authorizes the Director of Labor and Industrial Relations to issue a credit to an employer for any overpayment of benefits.

     Seven written comments were submitted to your Committee.  The written comments may be reviewed on the Legislature's website.

     Your Committee believes that this measure will discourage employers from routinely denying claims pending an investigation and instead encourage employers to ensure that workers return to work only when they are able.

     Your Committee has amended this measure by changing the effective date to July 1, 2090, and July 1, 2100, respectively, for the purposes of continued discussion of the matter.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 63, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 63, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONNA MERCADO KIM, Chair